In: Accounting

Claim full business purchases of up to $5,000 against your tax by March 16 2021

This is just a reminder – The Government passed legislation this past year, due to COVID, which temporarily increases the low-value asset threshold for depreciation from $500 to $5,000.

This means you can deduct the full cost of your business asset purchases, with a value of less than $5,000, in this current tax year. This is instead of having to spread the cost over the life of the asset (What’s known¬†as depreciation).

The Government is only raising the threshold for a short time, until 16 March 2021, so if you need a vehicle or trailer, mobile phone upgrade, new computers and office equipment, or other plant and machinery valued under $5k, now is a good time to purchase them.

For assets purchased on or after 17 March 2021, this threshold will now permanently be raised to $1,000.

For more information or if you’d like to discuss your options, contact the team at Tag, we’d love to help.